The Federal Executive Council approved new national automotive policy aimed at encouraging local production and assembling of new vehicles with an imposition of a high import tariff on fully built vehicles. A two-page document dated November 14, 2013 and signed by the Minister of Finance, Dr. Ngozi Okonjo-Iweala, gave the new import tariff on cars as 70 per cent (of the cost of each vehicle). It stated that a fully built car would attract a duty of 35 per cent and a levy of another 35 per cent of the cost of the vehicle.
Although the new tariff on cars shows an increase of 48 per cent over the old rate, dealers have estimated that the showroom price of an imported car will rise by 60 per cent when other variables (costs) are added.
The main concern of the Used car Importers in Nigeria was that the supplies from the local plants will be grossly inadequate to meet the demands of the used cars in Nigeria.
Vehicles have to be Left Hand Drive.
As per the new tariff plans, local assembly plants may import completely knocked down cars at zero per cent duty; and semi-knocked down cars at five per cent duty and imported tyres would also cost more as 20 per cent duty and five per cent value added tax have been placed on tyres of cars, buses and lorries. Similar high tariff will also be charged on used vehicles, according to the document.
Vehicles eight years old or older are prohibited.
Despite the assurance that there will not be any ban on the import of the used cars in Nigeria, the new auto policy created anxiety among importers of fairly used vehicles on the future of their business.
The new auto policy was considered as good development by many patriotic Nigerians expecting that the policy will lead to many big time car manufacturers all over the world coming to invest in automobile business in Nigeria and even big time importers of new cars will move to the next level by pooling resources together to start manufacturing vehicles of different types. The new policy may not hold good for many others, particularly some big time importers and their partners but the policy holds a lot of hope for the country because of the multiplier effect on the national economy.
This will cover the cost of the vehicle if the vessel sinks, catches fire, or destroyed totally during transit, cost of 'general average' cost of salvation, if vessel is rescued before sinking, cost of any parts stolen during transit.
Although Marine Insurance is not compulsory, it depends on the buyer.
Approximately 8-10 weeks depending on the vessel schedule
Note: All information above is subject to change without notification.Please contact your local customs clearing agent and inquire for latest updates.